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New Ship building Activity On the Rise

Hellenic Shipping News 04/05/2017

Ordering activity has continued its upwards pace over the course of the past week, raising fresh concerns that the glut of vessels could once again come back to plague the industry’s rebound. In its latest weekly report, shipbroker Allied Shipbroking noted that “the newbuilding market came to life this past week, with the numerous rumoured deals that where in the works now coming to light. Interest has intensified considerably these past months, with in part the increase in second-hand prices having pushed a number of potential buyers to this direction, while at the same time the slowly firming prices being quoted by shipbuilders pushing others to place orders on speculation fearing that they will lose the window to secure these low prices before it closes shut. The truth is that given the current cost structure present in the main shipbuilding nations, prices are unlikely to hold at such low levels for very long. However given the state of the underlining fundamentals in the main shipping markets (dry bulk, tankers e.t.c), there is currently little reason for another excess to be made in the shipbuilding front and in effect drown the market once again with the glut in supply that will inevitably follow. We are still far from this scenario, but caution most always be held”.

In a separate newbuilding report, Clarkson Platou Hellas said that “Contracting activity mostly came from the wet sector this week. Hyundai Heavy Industries have announced an order for two firm plus two optional 300,000 DWT VLCC Tankers from Sentek Marine in Singapore. The firm two vessels are set for delivery in 1H 2019 from Hyundai’s Samho facility. Although contracted some time ago, it came to light this week that Nantong Xiangdu Shipyard (formerly Nantong Mingde Shipyard) have won an order for one firm plus three optional 38,800 DWT SUS Tankers from Goldwin Shipping. The firm units will delivery within 2H 2018 from Nantong, China. Thun Tankers have announced signing a contract with AVIC Dingheng for four firm 17,500 DWT IMO2 Chemical / Product Carriers for delivery throughout 2019 and 2020. STX have won their first order since 2015 by signing a contract for three firm plus one optional 11,200 IMO2 Chemical / Product Tankers for delivery in 2018 and 2019 from their Jinhae yard. The order will be split between two domestic owners Woolim Shipping and Sambong D&C. Dae Sun have announced an order for a single 6,500 DWT IMO2 Chemical Product carrier due to deliver by November 2018”, Clarkson Platou Hellas concluded.

Finally, Allied added that “on the dry bulk side, things seemed to be slowly softening in terms of activity, although we did see a considerable number of Capesize units changing hands, largely helped by two enbloc deals. Given the slightly corrective stance being noted in the freight market, it wouldn’t be to anyone’s surprise if we were to witness a stall in the upward momentum that has been noted over the past couple of weeks in secondhand asset prices. On the tanker side, activity continues to be limited, with just over a hand full of MR units being reported this week two of which were an old sale that’s only just come to light as fully fixed. Overall sentiment has not been holding at very high levels in the tanker market, while the biggest factor as to the limited activity being noted since the start of the year continues to be the limited interest sellers have at the current price levels offered by potential buyers”, the shipbroker concluded.Nikos Roussanoglou, Hellenic Shipping News Worldwid

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